Bureau of Business Research
Date of this Version
10-21-2014
Document Type
Article
Abstract
Summary: The Leading Economic Indicator – Nebraska (LEI-N) fell by 0.10% during October 2014. The slight decline in the LEI-N, which predicts economic growth in the state six months in the future, is the second consecutive decline and suggests that Nebraska economic growth will moderate. In particular, state economic growth is expected to slow in the first four months of 2015. Two components contributed to the decline in the leading economic indicator in October. First, there was a significant increase in the value of the U.S. Dollar. Such an increase reduces the competiveness of exporters in Nebraska and throughout the United States. Second, there was a decline in building permits for single-family homes during the month. Airline passenger counts and initial claims for unemployment insurance were essentially flat during October. Among other components, there was a modest improvement in manufacturing hours during the month and business expectations were strong. In particular, respondents to the Survey of Nebraska Business predicted an increase in sales and employment over the next six month.
Comments
Prepared by the UNL College of Business Administration, Department of Economics